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Managing Sustainability
First Steps to First Class
John Friedman
Managing Sustainability: First Steps to First Class
Copyright © Business Expert Press, LLC, 2020.
10 9 8 7 6 5 4 3 2 1
Keywords
business strategy; strategic alignment; sustainability; corporate respon-
sibility; best practices; organizational excellence; results; reputation;
leadership; management; employee engagement; environment; social;
governance; ESG; sustainable development goals, SDGs
Contents
Foreword ...............................................................................................ix
Chapter 1 Introduction......................................................................1
Chapter 2 Integrating Sustainability into the Business........................7
Chapter 3 Five Keys to Integrate Sustainability into the Business......37
Chapter 4 Creating a Leading Program.............................................59
Chapter 5 How Sustainability Is Changing Traditional
Functions of Business.......................................................79
Chapter 6 What’s Next?..................................................................101
Key Resources.......................................................................................115
About the Author.................................................................................119
Index..................................................................................................121
Foreword
Our home, planet Earth, is roughly four and a half billion years old.
When we, as human beings, think about our lives, our work, our legacy,
and those who will come after us, we like to imagine that this world
will go on forever. We hope that an infinite number of generations will
continue to come along and enjoy the same beauty, the same prosperity,
and the same expectations of a better future brimming with wonderful
possibilities.
That vision is at the heart of sustainability.
In this book, Managing Sustainability: First Steps to First Class, author
John Friedman examines the role of business in forging such a world.
A practitioner of the aspiring art of “corporate social responsibility,”
Friedman takes a no-nonsense look at the several meanings of sustain-
ability in the commercial sector. After all, making money, growing a cus-
tomer base, and, at the heart of it all, staying in business are the very core
of sustainability in the business world.
However, in a larger sense, people today believe that the vision of a
sustainable future includes them. It is an expectation of societies around
the world, written into law by governments everywhere. Business is duty
bound to be a proper steward of social fairness, equal opportunity, and
environmental responsibility. We expect our executives to be examples of
moral rectitude. Just ask any (former) higher-up out of work for reasons
of personal conduct, especially in the #MeToo era.
What the author addresses so articulately in this book is the necessary
next step that follows from corporate social responsibility, that is, creating
shared value.
Those of us who teach business in the 21st century tell our students
that—yes—it is your imperative to make money and stay in business. But
it is also an imperative to preserve and enhance the world from which you
draw your wealth.
x FOREWORD
Louise L. Schiavone
Johns Hopkins University Carey Business School
Baltimore, MD
CHAPTER 1
Introduction
Corporate Sustainability
For many people the concept of “sustainability”—meeting the needs
of this generation while safeguarding those of generations to come—is
synonymous with environmental protection and stewardship. However,
those working in the space focus on three main pillars: economic, envi-
ronmental, and social. This is what starts to separate an effort to balance
or meet all three needs with “environmentalism.”
For businesses, the term “corporate sustainability” is broken into three
related but slightly different categories: environment, social, and gover-
nance (ESG)—the concept being that much of what a business does eco-
nomically has to be done ethically, transparently, and with proper checks
and balances in place. For the purposes of this book, the term “sustain-
ability” relies on the later definition because it is also focused on the need
for the business to sustain, as well as the environment and the societies/
communities in which it operates.
One need only to look back a decade to the Great Recession and the
collapse of the global housing market to see an example of unsustainable
economic business practices. There were many reasons for the collapse,
which was primarily caused by a rise in subprime mortgage lending (selling
housing loans to people with poor credit) and a massive increase in hous-
ing prices. Riding the wave up were financial institutions, regulators, credit
agencies, and consumers (who did not want to miss out on easy credit and
often did not understand the terms of the loans that they were being sold)
as well as those who took advantage of the “easy money” to be made by buy-
ing and selling (flipping) houses while prices spiraled upward.
In 2015, the Environmental Protection Agency (EPA) discovered
that Volkswagen had been cheating in emissions tests by intentionally
2 MANAGING SUSTAINABILITY
1
US EIA. 2019. “EIA Forecasts Renewables Will Be Fastest Growing Source of
lectricity Generation.” https://www.eia.gov/todayinenergy/detail.php?id=38053,
E
(accessed October 12, 2019).
Introduction 3
What this means is that fossil fuels will still provide most of the elec-
tricity generated in the United States. Coal and natural gas combined
provided 63 percent of electricity generation in 2018 and EIA forecasts
that they will provide 61 percent in 2020.
In fact, most of the greenhouse gas reductions in the United States
have been due to the shift of U.S. electricity away from coal toward natu-
ral gas, which has grown faster than renewables. The EIA forecasts that
this trend will continue, meaning that efforts to “keep it in the ground”
run into the stark reality that the U.S. economy and the health and
well-being of millions of people rely on doing the exact opposite and will
for decades to come, absent major technological breakthroughs in both
renewable generation and storage.
In October 2019, wildfires forced Pacific Gas & Electric to shut down
the electricity to millions of Californians for several days. Those without
backup power (i.e., generators) were cut off. Those with electric vehicles
were faced with the possibility that they might not be able to leave the
affected areas.
2
JSTOR Daily. 2019. “Climate Change and Syria’s Civil War.” https://daily.jstor.org/
climate-change-and-syrias-civil-war/, (accessed October 12, 2019).
3
Christian Science Monitor. 1984. “East Germany Disputes Its Status as the Most
Polluted Country in Europe.” https://www.csmonitor.com/1984/1005/100538.html,
(accessed October 12, 2019).
4
Chicago Tribune. 1990. “Poverty, Hunger and Other Evils of Communism.” https://
www.chicagotribune.com/news/ct-xpm-1990-01-25-9001070410-story.html,
(accessed October 12, 2019).
Introduction 5
Discussion Questions
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